Description
Banyan Tree project for a Casino in Dubai – currently just a rumor.
Caesars Palace Exits Dubai — A Strategic Retreat or Missed Opportunity?
In a move that has surprised many industry observers, Caesars Palace has officially withdrawn from the Dubai market — just as the United Arab Emirates begins laying the groundwork for regulated gambling. Once seen as a prime candidate to host one of the country’s first legal casinos, the Las Vegas brand has now handed over the reins of its Dubai resort to Banyan Tree, marking a dramatic shift in the landscape.
Caesars had maintained a presence in Dubai since 2018, positioning itself for future opportunities in anticipation of legal reforms. Yet, despite signs that the UAE is now exploring pathways toward legalized gambling, Caesars Palace has chosen to exit — raising questions about the timing and underlying strategy.
Years of Waiting, Then a Sudden Exit
When Caesars entered Dubai’s hospitality sector, it did so with a long-term view. The brand didn’t just open a luxury resort — it opened a door, hoping one day to walk through it as a casino operator. For years, the property stood as a symbol of potential, patiently awaiting regulatory change.
That change, or at least the beginning of it, finally arrived in 2023. The UAE announced the formation of its first national gaming regulatory authority. Around the same time, a groundbreaking $3.9 billion integrated resort with a casino component was approved in Ras Al Khaimah — an Emirate located just north of Dubai.
Rather than doubling down, Caesars Palace quietly stepped away. It was a move that seemed counterintuitive — a withdrawal just as the doors began to open.
Silence from Caesars, Signals from Competitors
Caesars has not offered a detailed explanation for its departure. However, according to research conducted by the Dubai Casino Directory through various international media sources, company CEO Tom Reeg expressed optimism in 2022, stating to investors:
“If there’s an opportunity, you should expect that we would be active — our brand and building is already open.”
That building will now carry a different name. And while Reeg’s statement once reflected ambition, it may now serve as a reminder of an opportunity that didn’t materialize — at least not in Dubai.
Meanwhile, competitors are moving quickly. The Ras Al Khaimah project — spearheaded by Wynn Resorts — is pushing ahead, reportedly with the blessing of the new federal gaming body. It’s a shift in momentum that may have left Caesars reassessing its prospects.
This isn’t the company’s first retreat from a high-potential market. In the early 2000s, Caesars attempted to enter Macau via the acquisition of a golf resort, but failed to secure a gaming license and exited the market in 2013, taking a financial hit.
The Future of the Former Caesars Property
The Dubai resort formerly known as Caesars Palace is being rebranded and redeveloped under the luxury hospitality brand Banyan Tree. The transformation is part of a partnership with global hotel group Accor and Dubai Holding.
In a recent press release, Banyan Tree shared the following:
“Banyan Tree Dubai will replace the existing Caesars Palace Dubai and, following a phased enhancement process, will feature 179 guest rooms, 30 suites, and a newly designed four-bedroom villa with private entrance, beach, and pool access. Scheduled to open in late 2023, the property will introduce Banyan Tree’s signature Asian-inspired luxury to the heart of Dubai.”
Notably, the announcement made no mention of gambling, casinos, or any related amenities.
A New Player in the Casino Scene?
Though not traditionally associated with gaming, Banyan Tree may be warming to the idea. In late 2023, Soloviev Group announced a partnership with the brand as part of a proposed casino and hotel development near the United Nations headquarters in New York City.
If approved, this would mark Banyan Tree’s first property in the United States — and its first direct association with a casino project. For a brand known for wellness and high-end leisure, the move could signal a broadening of strategy.
Could the Dubai property, now under Banyan Tree’s control, be positioned for a future pivot if gambling becomes legal? While no such plans have been confirmed, the possibility remains open — especially as regulatory developments across the UAE continue to unfold.
Conclusion: The End of One Chapter, or the Start of Another?
Caesars Palace’s departure from Dubai is more than just a real estate transaction — it’s a strategic repositioning. Whether the move will be seen in hindsight as prudent or premature remains to be seen. The broader trend, however, is undeniable: the UAE is inching closer to opening up its market to regulated gambling, and global players are watching closely.
For Caesars, the door may not have opened quickly enough. For Banyan Tree, the door might still be opening.
